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During the year, Darla's Pet Shop's merchandise inventory decreased by $20,000. If the company's cost of goods sold for the year was $300,000,what purchases must have been ?
Which of the following statements is correct concerning an auditor's communication of internal control related matters (significant deficiencies) noted in an audit?
A credit sale of $800 is made on April 25, terms 2/10, net/30, on which a return of $50 is granted on April 28. What amount is received as payment in full on May 4?
For 2007 Landford Corporation reported net income of $30,000; net sales $400,000; and average share outstanding 6,000. There were no preferred stock dividends. What was the 2007 earnings per share ?
When an auditor increases the planned assessed level of control risk because certain control activities were determined to be ineffective, the auditor would most likely increase the
Which of the following most likely would not be considered an inherent limitation of the potential effectiveness of an entity's internal controls?
Alex contributes property with a fair market value of $3,000,000 and an adjusted basis of $1,200,000 to AP Partnership. Alex shares in $2,000,000 of partnership debt under the liability sharing rule
Assessing control risk at below the maximum most likely would involve :
Mercedes is an employee of MWH company and drives her car 12,000 miles a year for business and 3,000 miles a year for commuting and personal use. She is not reimbursed by her employer. She wants to
The concept of reasonable assurance in the context of an entity's internal controls recognizes that :
Prepare computations showing how much profits would increase or decrease as a result of purchasing the parts from the outside supplier rather than making them inside the company.
An auditor would most likely be concerned with internal control policies and procedures that provide reasonable assurance about the :
Analytical procedures enable the auditor to predict the balance or quantity of an item under audit. Information to develop this estimate can be obtained from all of the following except:
Glass Industries reported the following data for the year just ended: sales revenue, $1,750,000; cost of goods sold, $980,000; cost of goods manufactured, $560,000; and selling and administrative ex
Analytical procedures used in planning an audit should focus on identifying :
English company billed its customers a total of 1575000 for the month of november. The total iccludes a 5% state sales tax. Determine the proper amount of revenue to report for the month
Jennie is a full-time student at Mountain University and is claimed by her parents as a dependent. Her only source of income is a $6,750 scholarship ($250 for books, $3,500 for tuition, and $3,000 f
How long would it take for S&S Air to pay off the smart loan assuming 30-year traditional mortgage payments? Why is this shorter than the time needed to pay off the traditional mortgage? How muc
An auditor's decision either to apply analytical procedures as substantive procedures or to perform tests of transactions and account balances usually is determined by :
Ten years ago, Lisa Bara acquired a one-third interest in Dee Associates, a partnership. This year, when Lisa's entire interest in the partnership was liquidated, Dee's assets consisted of the follo
Which of the following statements is generally correct about the appropriateness of audit evidence?
Tugboats Corporation, a calendar year corporation that began doing business on January 1, 2005, had $35,000 in accumulated earnings and profits on January 1, 2011. Tugboats had an operating loss of
Which of the following best describes the primary purpose of audit procedures? A. To detect all errors or fraudulent activities. B. To comply with generally accepted accounting principles.
Which of the following procedures would an auditor most likely perform to verify management's assertion of completeness?
Farnsworth Inc. declared a $500,000 cash dividend. It currently has 10,000 shares of 8%, $100 par value cumulative preferred stock outstanding. It is one year in arrears on its preferred stock. How